ICE Canola Contracts Weaken on Good Weather, CBOT Losses
| 1 min read
| By Dwayne Klassen, Resource News International |
| May 17, 2010 |
| Winnipeg – Canola contracts on the ICE Futures Canada platform were trading at mainly lower price levels at midday with declines a reflection of the favourable weather conditions across the Canadian prairies and the sell-off seen in the CBOT soybean complex, market watchers said.
A good portion of the declines seen in canola were associated with the excellent weather across western Canada for the planting and development of the canola crop, brokers said. Producers were believed to have made significant seeding progress, with the recent moisture improvements and sunshine providing excellent germination for crops that have already been seeded. The losses seen overnight in the eCBOT soybean complex and in CBOT soybean and soyoil values with the start of the North American day session added to the bearish price sentiment seen in canola. Ongoing concerns about the euro-zone debt crisis added to the weakness as did the losses seen in global crude oil futures, brokers said. The declines in canola were being offset by scale down exporter pricing of old sales to Japan and by scale-down domestic processor demand. The absence of elevator company hedge selling as producers concentrate on spring fieldwork instead of marketings also helped to generate a firm price floor for canola. Weakness in the Canadian dollar was also an underpinning price influence for canola. There were an estimated 4,341 canola contracts traded at 10:37 CDT. Of the contracts traded, 2,828 were spread related. There were no western barley futures traded as of 10:37 CDT. |
